Absa’s credit life insurance is called the Credit Protection Plan, underwritten by Absa Life. To make a claim, contact Absa Life on 0860 227 253. The Absa Credit Protection claim page publishes that number but no list of claim documents, so ask Absa Life exactly what it needs for your type of claim.
The cover pays off or services an Absa credit agreement; it does not pay you. On death, the plan pays the outstanding balance of the loan in full. Your individual product terms and the policy schedule take precedence over the general overview on Absa’s website, so they govern your claim.
Eligibility Requirements at a Glance
Absa’s Credit Protection Plan page says the plan can cover personal loans, revolving loans, study loans, credit cards, overdrafts, vehicle finance and home loans. What it pays depends on the product:
- Death, permanent disability, critical or terminal illness: the outstanding balance is paid on a personal loan.
- Temporary disability or loss of income: on a personal loan the plan covers your monthly instalment for a limited time.
- Credit cards: temporary disability or loss of income pays 5% of the outstanding balance monthly for a limited time.
- Loss of income is a Plan A benefit only. Plan B, offered when you are not earning an income, has no loss-of-income benefit.
Credit life insurance is mandatory on all Absa personal loans, so if you have one you are covered under this plan. For other products, check your credit agreement or statements to see whether the plan applies to your account.
Income and Affordability Requirements
You do not prove income to make a claim, but your income status decides which plan applies to you.
- Personal loans: cover applies to an Absa Personal Loan between R1 000 and R350 000, from age 18.
- Credit cards: cover applies to a personal credit card limit up to R300 000. Plan Ax applies if you earn an income, are not older than 63 and are employed full time; otherwise Plan Bx applies.
- Home loans: the maximum sum assured is the home loan amount granted, up to R2 million. Plan A applies if you earn an income, otherwise Plan B.
Absa does not publish a premium table or a separate rule for self-employed borrowers on these pages. For a premium quote, ask Absa Life or your branch.
Credit and Financial Requirements
Short-term personal loans carry a Lump Sum Death Benefit equal to the outstanding loan, up to a maximum of R5 627. It is available if the account is not in arrears. There is no claim if the death is by suicide within the first 35 days, and the other exclusions are in the short-term loan terms.
Do not assume the same limits apply to other Absa products. Check the product terms for your loan, card or home loan.
Documents and Verification Required
Absa’s claim page gives only a telephone number and does not list claim documents. Ask Absa Life which documents it needs for your claim before you gather anything. A claim on a short-term personal loan is handled through any Absa branch.
Have these to hand when you call so that Absa Life can find the account:
- Your Absa loan, card or home loan account number
- The credit agreement and the Credit Protection Plan policy schedule
- Identification for the account holder
- Details of the event you are claiming for
How to Apply and Improve Approval Readiness
- Call Absa Life on 0860 227 253 as soon as the event happens and say which Absa product you are claiming on.
- Ask which documents and forms it needs for a death, disability, illness or loss-of-income claim.
- Submit them and keep a copy and proof of delivery.
- Ask for the decision, and the reason if the claim is declined, in writing.
Read your policy schedule before you claim. Absa’s public pages do not state a notification period or any waiting period, so check your policy terms for these.
Frequently Asked Questions
What is credit insurance at Absa Bank?
It is the Credit Protection Plan, underwritten by Absa Life. It covers Absa personal loans, revolving loans, study loans, credit cards, overdrafts, vehicle finance and home loans, and is mandatory on personal loans.
Is there a waiting period on Absa credit protection insurance?
Absa’s public Credit Protection pages state no waiting period. Short-term personal loans exclude death by suicide in the first 35 days. For other products, check your policy schedule or ask Absa Life on 0860 227 253.
What does Absa credit life cost if I am self-employed?
Absa does not publish a premium table or a self-employed rule on its public pages. Ask Absa Life or your branch for the premium on your product.
Does the plan cover loss of income?
Only under Plan A, which applies when you earn an income. Plan B has no loss-of-income benefit.
Confirm your claim requirements with Absa Life on 0860 227 253 and your policy terms. See all loan requirements and browse finance and funding requirements.